Not sure if Google is just trying to raise the price for MSN, but the WSJ reports [Sub Req]:

Google approached Comcast about participating in a bid for AOL last week, according to a person familiar with the matter. But Google may end up making a bid on its own, another person said.

The deal would put a value on AOL, as a whole, of about $20 billion, the people said. Any bid would be worth considerably less, however, as AOL's dial-up operations generate lots of cash and would account for much of its value.